Credit Card Rewards

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Credit Card Rewards

corksta

2397 posts

Uber Geek

Trusted

Subscriber

#243055 25-Nov-2018 08:49

I can’t really find an answer to this, even read the terms and conditions of my card...

If I have a credit limit of $1000 and I transfer $10,000 onto the card so that it’s in credit, then I go buy $10,000 worth of stuff, do I still earn rewards points? Or because I’m effectively using my own money I don’t qualify?

Anyone got any experience with this?

Linux

11391 posts

Uber Geek

Trusted

Lifetime subscriber

#2133683 25-Nov-2018 09:09

Yes you will still the points does not matter if credit card is in credit

John

antoniosk

2358 posts

Uber Geek

ID Verified

Trusted

Lifetime subscriber

#2133704 25-Nov-2018 10:36

As john said, that's what should happen. Whether you money in ahead of purchases or after, its the spending that generates the reward.

Note, if you try to draw out remaining cash out afterwards, you're likely to be hit with cash withdrawl fees....

________

Antoniosk

BlinkyBill

1443 posts

Uber Geek
Inactive user

#2133715 25-Nov-2018 11:49

Instead of using a credit card, negotiate pricing with the cash and use the savings to buy much better stuff than you can get via the rewards system.

toejam316

1466 posts

Uber Geek

Trusted

Lifetime subscriber

#2133722 25-Nov-2018 12:39

BlinkyBill: Instead of using a credit card, negotiate pricing with the cash and use the savings to buy much better stuff than you can get via the rewards system.

Retailers that haggle are few and far between - and those that will haggle don't care if it's cash or card.

Anything I say is the ramblings of an ill informed, opinionated so-and-so, and not representative of any of my past, present or future employers, and is also probably best disregarded.

corksta

2397 posts

Uber Geek

Trusted

Subscriber

#2133846 25-Nov-2018 16:50

Thanks all for the replies. It was buying appliances at Noel Leeming, they did some price matching on top of their 30% off but as mentioned they couldn’t have cared less if it was cash or card I was using.

richms

28168 posts

Uber Geek

Trusted

Lifetime subscriber

#2133847 25-Nov-2018 16:57

Handling costs of cash generally exceed the costs of doing a card transaction. I cant stand people that think they are doing a legit store a favour by spending cash instead of just using their damn card.

Richard rich.ms

eracode

Smpl Mnmlst
8846 posts

Uber Geek

ID Verified

Trusted

Subscriber

#2133859 25-Nov-2018 17:28

richms:
Handling costs of cash generally exceed the costs of doing a card transaction. I cant stand people that think they are doing a legit store a favour by spending cash instead of just using their damn card.

Strong feelings - are you a shopkeeper?

Sometimes I just sit and think. Other times I just sit.

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

SirHumphreyAppleby

2844 posts

Uber Geek

#2133861 25-Nov-2018 17:44

richms:

Handling costs of cash generally exceed the costs of doing a card transaction. I cant stand people that think they are doing a legit store a favour by spending cash instead of just using their damn card.

$2 per $1000 of notes (ASBs note handling rate) is a lot less than credit card fees. If you have to pay someone to do the banking for other cash purchases, more cash is definitely cheaper. If you're not banking sufficient cash to offset the fees, buy a small safe and go to the bank less often, and give out change in coins where possible, since coin handling fees are higher (but still lower than card fees).

Jase2985

13457 posts

Uber Geek

ID Verified

Lifetime subscriber

#2133946 25-Nov-2018 20:30

and the cost for someones time to go to the bank?

Tracer

343 posts

Ultimate Geek

#2133950 25-Nov-2018 20:41

SirHumphreyAppleby:

$2 per $1000 of notes (ASBs note handling rate) is a lot less than credit card fees. If you have to pay someone to do the banking for other cash purchases, more cash is definitely cheaper. If you're not banking sufficient cash to offset the fees, buy a small safe and go to the bank less often, and give out change in coins where possible, since coin handling fees are higher (but still lower than card fees).

You have to pay your own staff for all the handling done in store, and transferring to the bank. Not to mention the additional risk (financial and personal safety) involved in handling cash and having it on premises.

SirHumphreyAppleby

2844 posts

Uber Geek

#2134006 25-Nov-2018 21:10

Jase2985:

and the cost for someones time to go to the bank?

Tracer:

You have to pay your own staff for all the handling done in store, and transferring to the bank.

Err... already accounted for in my reply.

If you have to pay someone to do the banking for other cash purchases, more cash is definitely cheaper.

richms

28168 posts

Uber Geek

Trusted

Lifetime subscriber

#2134019 25-Nov-2018 21:36

Cash takes longer at the till than a card, there is the need to carry a float for change to give to people, there is the chance of an error as staff have to count the cash from the customer, the change, and then do a cash up at the end of the day and take the amount above the float to the accountants, they have to get change for the float when it runs out of $1 and $2 coins from the accountants.

If you have integrated eftpos then there is zero chance of staff errors or being dodgey with cart transactions.

And then not all card transactions are credit, a majority of the small ones would be eftpos since some people seem to think that using their credit card for small purchases is a bad thing, there is zero cost on those ones vs the high proportional cost on the cash ones.

Ive taken to just putting it thru the machine as soon as I have the total since that will provoke most people into getting their card out rather than the cash they were aiming for with their wallets open.

Richard rich.ms

SirHumphreyAppleby

2844 posts

Uber Geek

#2134064 26-Nov-2018 06:42

Time at the till is irrelevant, unless you've got constant queues. Those staff are being paid, in many cases more than they are worth, regardless of utlisation.

While you could theory haggle over the pricing of anything, it's higher value items which tend to be where this occurs (e.g. appliances, which the OP was talking about). Stores selling higher value items usually have people spending time with potential purchasers selling and negotiating. The time invested to make a sale is longer, and the rate such sales are fed in to the queue for payment (assuming the sales rep doesn't handle it themselves) is lower. A few extra seconds (which is really all it is most of the time) processing cash is negligible in the bigger picture

You can't eliminate cash completely, so the costs of handling cash irrespective of the amount is relatively constant, unlike credit card fees which are directly proportional to spend.

wsnz

649 posts

Ultimate Geek

#2134269 26-Nov-2018 11:09

SirHumphreyAppleby:

Time at the till is irrelevant, unless you've got constant queues. Those staff are being paid, in many cases more than they are worth, regardless of utlisation.

By optimising the checkout process, staff can be redeployed to other productive tasks. Therefore for our retail operations, we are very conscious about time spent at the till.

MileHighKiwi

782 posts

Ultimate Geek

ID Verified

Lifetime subscriber

#2134329 26-Nov-2018 11:53

To answer the OP: you will earn points on all purchases regardless of whether you have funded it yourself or the bank has. The banks will earn the interchange on those transactions, which funds rewards. It will depend on if the retailer will let you use your credit card for the purchase, e.g. buying a car, my colleague wanted to pay by credit card to earn points. The dealer would only accept max $5K via a credit card.